The time that most of us have been anticipating has finally arrived as the S&P 500 index successfully managed to travel to new highs over the previous week, gaining 17+% for the year. Still, the index survives in "overbought" territory of the market. This should be no surprise since this is considered a typical occurrence when advancing into new highs.

Meanwhile, global equities have regrouped 13% from the beginning of the year. For some investors, this is seen as something revolving in the manufacturing of the Purchasing Managers’ Index. UBS distinguishes that equities have gone up to an average of 25% in the past 12 months following the PMI-associated troughs. Even so, worry and uncertainty is still present in the minds of investors. Capital Group stated that investors often ask one question at the present time, pondering if the U.S economy is truly overdue for a recession. 

The market is known to have the ability to change very rapidly from positive to negative and investors are well aware of this fact and are well informed of the caution that they should instill into themselves in every “What if” situation that the market presents when valuations are too high, global issues get in the way and many more factors. What investors get tired of is the fact that there is always something that can be the root of the prediction of things that could go wrong into the future.

Being cautious can be a good move when dealing with today’s market, but sometimes being influenced by assumptions regarding what can happen to cause investors to lose. Some investors have been moving too carefully in the market that they become scared of seizing an opportunity whereas the “What if” considerations that this opportunity might have attached to it. This can be seen as true, especially in bull phases of the market, where investors are more anxious about the decisions they make that they prefer maintaining capital rather than looking for favorable chances.

By: Cyril Latrice Cajanding